Monday, July 15, 2013

An Odd Statement from Bob Murphy

For example, Austrians like me think that the 1929 stock market crash was (partially) due to expansionary Fed policy during the 1920s, which caused an unsustainable boom.

What has me confused here is the word "partially" that Murphy puts in parenthesis. Is he suggesting that there were other factors that caused the crash? Is he suggesting that there would have been a crash, even if there wasn't monetary expansion?

If he is suggesting these points, how is he tying this in with Austrian school thinking?